Tesla has proposed a new ten-year compensation plan for CEO Elon Musk that could be worth as much as one trillion dollars. This proposal comes at a time when the company’s electric vehicle business is facing challenges and it is shifting its focus toward humanoid robotics and artificial intelligence.
The compensation is tied to a series of ambitious benchmarks. One key requirement involves increasing Tesla’s overall market valuation from its current level of approximately one trillion dollars to more than eight trillion dollars. If approved, the plan would grant Musk over 423 million additional shares in the company, which would increase his level of control to about twenty-five percent. Musk had previously indicated he might leave Tesla if he did not gain more voting power.
Shareholders will vote on the proposal at Tesla’s annual meeting scheduled for later this year. The details of this new plan emerge just one month after the company awarded a twenty-nine billion dollar compensation package intended to replace a previous plan that was rejected by a judge in Delaware.
In a filing with the Securities and Exchange Commission, Tesla wrote to shareholders that the world is at a critical inflection point. The company claims it can usher in an era of sustainable abundance by introducing innovative and affordable technologies at a large scale. Tesla stated it can help bring about a society that democratizes autonomous goods and services.
The filing also emphasized that Musk’s singular vision is vital to navigating this critical period. Tesla cited its recently published Master Plan Part IV, which it says Musk unveiled. This is despite the fact that the CEO barely acknowledged the plan and agreed that it lacked specific details.